Overview of a Landmark Tip Credit Violation Case

At Herrmann Law, we represent employees in wage and hour cases, with a focus on servers in the restaurant industry who frequently face tip theft due to tip credit violations. In this blog post, we will discuss a pivotal case that underscores the rights of servers and our firm’s success in securing benefits for all servers.

Background of the Case

Our client, a server at a popular Houston pizzeria, worked there from May 2016 until December 2018. During their tenure, the restaurant paid them $2.13 per hour plus tips, asserting the FLSA tip credit. Additionally, the establishment deducted a compulsory $10 “linen fee” per pay period from our client and other servers for cleaning their work aprons and supplying unlimited soft drinks to employees.

The Lawsuit and Court Decisions

Our client, a server at a popular Houston pizzeria, worked there from May 2016 until December 2018. During their tenure, the restaurant paid them $2.13 per hour plus tips, asserting the FLSA tip credit. Additionally, the establishment deducted a compulsory $10 “linen fee” per pay period from our client and other servers for cleaning their work aprons and supplying unlimited soft drinks to employees. Our client filed a lawsuit against the pizzeria, alleging non-compliance with the FLSA notice requirements before claiming the tip credit and improper pay deductions with the linen fee.

The district court ruled in favor of our client, and the U.S. Court of Appeals for the Fifth Circuit upheld the decision. The court determined that the restaurant failed to meet the necessary tip credit notice provisions and deemed the linen fee unreasonable. Consequently, the pizzeria was held accountable for the full tip credit amount for each our hour client worked, repayment of the linen fee, liquidated (double) damages, and attorney’s fees.

The court concluded that the cost of supplying and cleaning uniforms was illegal, making the linen fee imposition on employees unreasonable. Furthermore, the court found that the restaurant did not act in good faith regarding FLSA compliance, warranting the liquidated damages award.

The Fifth Circuit emphasized the significance of attorney’s fees in FLSA cases, stating that when an employee prevails, the FLSA requires an award of attorney’s fees and costs. This ruling not only acknowledged our firm’s critical work but also confirmed that such an award is mandatory. Herrmann Law represents clients on a contingency fee basis, ensuring that we only recover fees if the employee prevails.

Key Takeaways from the Landmark Case

Employer Accountability and Damages Awarded

The pizzeria was held accountable for the full tip credit amount, the linen fee, liquidated (double) damages, and attorney’s fees during our client’s employment.

Importance of Attorney’s Fees in FLSA Cases

The Fifth Circuit emphasized the significance of attorney’s fees in FLSA cases, stating that when an employee prevails, the FLSA requires an award of attorney’s fees and costs.

What This Means for Servers and Restaurant Employees

Understanding Your Rights and Fair Treatment

If you are a server who has encountered tip theft or other wage and hour violations, it is essential to understand your rights. This landmark case in tip credit violations serves as a reminder that you deserve fair treatment under the law.

Contact Herrmann Law for Assistance

At Herrmann Law, we are committed to assisting employees like you in pursuing justice. If you are a server who has encountered tip theft or other wage and hour violations, it is essential to understand your rights. This landmark case in tip credit violations serves as a reminder that you deserve fair treatment under the law. At Herrmann Law, we are committed to assisting employees like you in pursuing justice. Contact us today to discuss your case and learn how we can help protect your rights. Call us at 817-479-9229 or submit your information online.